Insider-Trading Hedge Fund Manager Whitman Settles With SEC

Mar 26 2013 | 11:59am ET

Doug Whitman, a former hedge fund manager convicted of insider-trading last year, has agreed to pay $1.8 million to settle Securities and Exchange Commission charges.

Whitman and his firm traded on confidential information about Google Inc. and Polycom Inc. that he received from former Galleon Group trader Roomy Khan, who testified against him. Khan was his neighbor in California.

Whitman earned more than $900,000 on Khan's tips. After his conviction, he was ordered to pay nearly $1.2 million in forfeiture and fines; the forfeiture will be set against the SEC settlement, meaning Whitman owes less than $900,000 more.

In addition to the monetary penalties, Whitman, who was sentenced to two years in prison, agreed to be barred from the securities industry.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of